§ 553-c. Additional powers and provisions in relation to railroad and
rapid transit projects. 1. The authority shall have the power to finance
all or any part of the costs of railroad and rapid transit costs
enumerated in paragraphs m, n, o and p of subdivision nine of section
five hundred fifty-three of this article through the issuance of its
negotiable bonds, notes or other obligations in the manner provided in
section five hundred sixty-one of this chapter subject only to the
following limitations:

(a) The aggregate principal amount of such bonds, notes or other
obligations shall not exceed three hundred million dollars
($300,000,000) excluding (i) bonds issued to fund any reasonably
required debt service reserve fund, and (ii) bonds, notes or other
obligations issued to refund or otherwise repay bonds, notes or other
obligations theretofore issued for any of the purposes set forth in this
subdivision, and

(b) Bonds issued for such purposes may be issued as a single issue or
in series from time to time provided that (i) such issue or each such
series shall be scheduled to mature over a term of not less than twenty
and not more than thirty years, (ii) the aggregate amount of principal
and interest or principal installments and interest payable in each year
during which such principal payments or installments are made or
provided for shall not exceed twenty-six million dollars, and (1) with
respect to such issue, or (2) with respect to each such series or the
aggregate of all such series, as the authority shall elect, be as nearly
equal as practicable.

2. Moneys expended pursuant to subdivision one of this section shall
be utilized insofar as practical to: (a) purchase at least one hundred
twenty-four new subway cars for the New York city transit authority, (b)
rehabilitate at least two hundred eighty existing subway cars for the
New York city transit authority, (c) acquire at least fifteen new diesel
self-propelled railroad passenger cars for the metropolitan
transportation authority commuter service area and (d) provide a
passenger car lay-up yard and other facilities for the Long Island Rail
Road in Manhattan. The authority shall either apply for or make
reasonable effort to secure federal assistance in support of each of the
programs herein authorized and to the extent such federal assistance is
forthcoming and/or other cost savings are realized with respect to any
such program shall have the power to expand the size of that or any of
the foregoing programs.